Your Tax Question – 057

Dear John, Is it true that I need to wait until after February 15^th to do my taxes this year? Sincerely, Jules
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Hi Jules,

Because congress did not get things wrapped up until mid-December of 2010, the IRS has been scrambling to get their systems changed. For that reason the IRS had informed preparers that beginning Feb. 14, the IRS will start processing both paper and e-filed returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917, and the educator expenses deduction. So Jules, if you are not one of these effected people you are free to submit your return at any time.

With that said, I also suggest that my clients wait until after February 15^th to do their taxes if they have any dealings with brokerage firms as these firms are not required to have 1099-INT’s to their clients until that time anyway.

I hope this helps,
John

Your Tax Question - 002

Dear John, Does my grandmother have to file a tax return this year? Thank you, Penny.
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Hi Penny,

There are some factors to be considered. Did your grandmother get paid wages? Did she have “Unearned Income” over $950 (interest, dividends, rental properties, etc.), is she over 65? You need to talk with a tax professional or you can visit the IRS website for more details.
http://www.irs.gov/individuals/article/0,,id=96623,00.html.

Blessings,
John

PS. I would love to add you and your grandma to my limited client list for this tax season. Email me.